All categories

3 years ago

The open-economy macroeconomic model takes

Business

1 answer:

bekas [8.4K]3 years ago

8 0

Answer:

The correct answer is option b.

Explanation:

The open-economy macroeconomic model is used to determine the trade balance and exchange rate. This model assumes both GDP as well as the price to be given.

The exchange rate is determined through the demand and supply of loanable funds. The supply of loanable funds in an open economy comes from national savings. The demand for loanable funds comes from domestic investment and capital outflow.

You might be interested in

An important application of interest involves amortized loans. Some common types of amortized loans are automobile loans, home m

Luda [366]

Answer:

a)Annual Repayment Installment:$2,812.1

Amount to be applied to interest:$1040

Amount to be applied to principal: $1772.10

Explanation:

The annual payment which will be used to offset the loan is computed as

follows:

Annual Installment = Loan amount/annuity factor

Annuity factor = (1 - (1+r)^(-n)/r )

= 1- (1+0.08)^(-6)/0.08)

= 4.6228

Annual Repayment Installment

= 13,000/4.6228

= $2,812.1

b) Amount of first payment to be applied to Interest and principal :

Amount to be applied to interest:

Interest due in year 1 = 8% × $13,000

= $1040

Amount to be applied to principal:

= $2,812.1-1040

= $1772.10

Annual Repayment Installment:$2,812.1

Amount to be applied to interest:$1040

Amount to be applied to principal: $1772.10

7 0

3 years ago

Describe carefully the main difference between the Keynesian approach and the real business cycle theory in terms of explaining

yulyashka [42]

Answer: For the real business cycle, technical fluctuation that triggers changes in outputs and employment, while for the Keynesian, income and output depend largely on the volume of employment.

Explanation:

The real business cycle theory assumes that when the market undergoes variation in it's ability to turn inputs into product, there is a technical fluctuation that triggers changes in outputs and employment

While the Keynesian, it's sees business cycles as periodic fluctuations of employment, income and their output. This income and output depend largely on the volume of employment.

5 0

3 years ago

Jose wanted to make a graph to show his budget for the month. what type of graph would be the most appropriate to graph for jose

Andru [333]

D. Circle (Pie) graph

3 0

3 years ago

Read 2 more answers

You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Scion xA, which will cos

PilotLPTM [1.2K]

Answer:

EAC of Scion xA= 12,429.24

EAC of Toyota = $11,922.02

The Toyota should selected because it has a lower EAC

Explanation:

Equivalent Annual cost = PV of cost/Annuity factor

<em>Scion xA</em>

PV of OCF= A × (1- (1+r)^(-n)/n

= 2,900 × (1 -(1.13)^(-3))/0.13=6847.342534

PV of total cost = 22,500 + 6847.34 = 29,347.34253

EAC = 29,347.34/ 2.361152598= 12429.24433

EAC = 12429.24

<em>EAC Toyota</em>

PV of OCF = 1500×(1 -(1.13)^(-4))/0.13= 4461.706988

PV of total cost = 31,000 + 4461.7069= 35,461.70699

EAC = 35,461.706/ 2.9744 = 11,922.02

EAC = $11,922.02

EAC of Scion xA= 12429.24

EAC of Toyota = $11,922.02

4 0

4 years ago

Match the types of agreements to their descriptions. Answer choices are will,living will,trust,prenuptial agreement

Roman55 [17]

A will has legal impact after you have passes away and has to be filed with the court.

A living will is similar to a regular will be takes effect while you are still alive to figure out where your assets should be placed.

A trust is an agreement that allows a third party to hold the assets on behalf of a beneficiary.

A prenuptial agreement is an agreement made before a marriage that explains what should happen to their assets in the event their marriage does not last. This is common in famous people due to the amount of money they have.

4 0

4 years ago

Read 2 more answers